Case | HBS Case Collection | December 2006 (Revised January 2007)

Restructuring Navigator Gas Transport Plc

by C. Fritz Foley

Abstract

How should creditors pursue their claims in a multi-jurisdiction bankruptcy? David Butters, Managing Director at Lehman Brothers, negotiates a restructuring of Navigator Gas Transport, a shipping company that is headquartered in Switzerland, incorporated in the Isle of Man, and operates ships that travel around the world. In analyzing the choices he faces, students must consider how the initial capitalization of Navigator contributed to its financial distress, evaluate several restructuring plans from a variety of perspectives, and assess how Butters might resolve the legal inconsistencies that arise in a multi-jurisdiction bankruptcy. In addition, they must determine if Butters has sufficient information about, and control over, operations at Navigator to be confident engaging in a lengthy set of legal proceedings.

Keywords: Management Teams; Insolvency and Bankruptcy; Complexity; Capital Structure; Restructuring; International Finance; Law; Ship Transportation; Shipping Industry; Switzerland; Isle of Man;

Citation:

Foley, C. Fritz. "Restructuring Navigator Gas Transport Plc." Harvard Business School Case 207-092, December 2006. (Revised January 2007.)